Below is the brief near-term outlook of the five key steel products Mysteel shares on a weekly basis based on a series of related surveys and communication with market participants.
Rebar & wire rod: The prices are expected to be with small adjustments over May 18-22, as Chinese steel mills had been ramping up production over May 11-15, but demand from end-users may see seasonal decline in June, a traditional rainy season for East China and South China.
Hot-rolled coil: The price may strengthen further over May 18-22, mainly on the support of improved market demand and continued de-stocking at the traders, although the steel producers are likely to step up production modestly after they wrap up the maintenance.
Cold-rolled coil: The price may hover high over May 18-22 because of low production by the steel mills over May 11-15 and the domestic steel market has been full of expectations with China’s top two political sessions – namely CPPCC and NPC to be held on May 21 and May 22 respectively.
Medium plate: The price may lose some steam over May 18-22, as some low-priced imported materials are expected to flow into Zhejiang, Jiangsu, Guangdong and Shandong provinces in late May and early June, possibly adding pressure on local prices.
Sections: The price may edge up over May 18-22, as some steel mills raised EXW prices over May 11-15, and billet price in Tangshan, North China’s Hebei province, gained another Yuan 30/MT on week to Yuan 3,170/MT EXW including the 13% VAT on May 15.
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